Given the Following Information, Calculate the Debt Coverage Ratio of This

question 15

Multiple Choice

Given the following information, calculate the debt coverage ratio of this commercial loan. Estimated net operating income (NOI) in the first year: $150,000, Debt service in the first year: $100,000, Loan amount: $1,000,000, Purchase price: $1,300,000

• A) 0.15
• B) 0.67
• C) 1.30
• D) 1.50